write-off

(rīt'ôf', -ŏf')
n. Accounting

1. 1. A cancellation of an item in account books.
   2. The amount canceled or lost.
2. A reduction or depreciation of the entered value of an item.

A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues.

Investopedia Says:
For example, if you spend money on dinner to take out a client, that meal is a possible write-off towards your income because you presumably discussed business opportunities during the dinner. Suppose, for another example, you made a sale on credit to a customer, but two weeks later the client's business declared bankruptcy and became completely unable to pay off the credit account with you. This uncollectible debt would then be written off by your company and recorded as an expense by accountants.

Related Links:
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Learn what it means to do your homework on a company's performance and reporting practices before investing. Advanced Financial Statement Analysis
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Charging an Asset amount to expense or loss. The effect of a write-off is to reduce or eliminate the value of the asset and reduce profits. Write-offs are systematically taken in accordance with allowable tax Depreciation of a Fixed Asset and with the Amortization of certain other assets, such as an Intangible Asset and a capitalized cost (like premiums paid on investments). Write-offs are also taken when assets are, for whatever reason, deemed worthless, the most common example being uncollectible Accounts Receivable. Where such write-offs can be anticipated and therefore estimated, the usual practice has been to charge income regularly in amounts needed to maintain a Reserve, the actual losses then being charged to the reserve. The Tax Reform Act of 1986 required that Bad Debt write-offs be charged directly to income by taxpayers other than small banks and thrift institutions. See also Extraordinary Item: Nonrecurring Charge.

1. Accounting process whereby a loan determined to be a worthless asset is removed from the books as an earning asset and charged to the Loan Loss Reserves account. Its book value is written down to zero.

2. Process of removing a Bad Debt or uncollectible loan from the balance sheet.

An accounting procedure where an asset whose value has declined is reserved or taken off the books.
Example: To certify a financial statement, the CPA insisted that uncollected rents from the previous year be entirely written off, as the possibility of collection was minimal.

1.  Reduce an asset's book value to zero because it is worthless, as in The truck was wrecked completely, so we can write it off. [Late 1600s]
2.  Cancel from an account as a loss, as in Since they'll never be able to pay back what they owe, let's just write off that debt. [Late 1800s] Also see charge off, def. 2.
3.  Regard as a failure or worthless, as in There was nothing to do but write off the first day of our trip because of the bad weather, or She resented their tendency to write her off as a mere housewife. [Late 1800s]
4.  Amortize, as in We can write off the new computer network in two years or less. Also see charge off, def. 2.

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v

Definition: devalue; forget about
Antonyms: figure

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Dansk (Danish)
n. - afskrivning

Nederlands (Dutch)
afschrijving

Français (French)
n. - épave (un véhicule, un avion), passation d'une créance aux profits et pertes, somme non percevable, critique/attaque (d'un livre), chose/personne sans espoir ou inutile

Deutsch (German)
n. - Abschreibung, Versager, Reinfall, Totalschaden

Ελληνική (Greek)
n. - ολική απώλεια, (αυτοκίνητο) τελείως κατεστραμμένο

Italiano (Italian)
rottame, deduzione fiscale

Português (Portuguese)
n. - cancelação (f)

Русский (Russian)
полное списание со счета, списанное имущество, списанная со счета сумма, снижение стоимости, никуда негодная вещь

Español (Spanish)
n. - cancelación, anulación, amortización

Svenska (Swedish)
n. - avfärdande

中文（简体）(Chinese (Simplified))
销帐, 帐面价值的削减, 勾销

中文（繁體）(Chinese (Traditional))
n. - 銷帳, 帳面價值的削減, 勾銷

한국어 (Korean)
n. - (장부에서의) 삭제, 감가계정, 수리 불능의 비행기

日本語 (Japanese)
n. - 帳消し, 価格引き下げ

العربيه (Arabic)
‏(الاسم) حذف, خفض قيمه الموجودات‏

עברית (Hebrew)
n. - ‮(סכום/חפץ) שהוכר כהפסד (בעיקר רכב), (סכום/חפץ) שנמחק‬

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